Hi S, yeah there it is, cash spent in the past, finally written...

Hi S,
yeah there it is, cash spent in the past, finally written off to reflect reality, still potential for more given EBIT of Lihir imo. A 1.5-2.5BLn writedown means it is in theory trading well above book value atm

Good new management team, taking decisions as the POG and costs dictate, delaying capex, cutting back on JV's etc but its still overvalued despite these management improvements iMO

As for Capital/ Issue,,,,I still don't think its unreasonable to think it could happen, they delayed Cadia development costs to preserve cashflow last fin year and they need that capex and capex for Lihir, so its all about cashflow, and whilst new ppl are running it efficiently, it isn't throwing off huge amounts with POG AUD at these prices.

trade safe